Social services report shows extent of NZ poverty

By CathNews New Zealand

July 3rd, 2026

Alicia Sudden (NZCCSS)

Nearly half a million people in Aotearoa New Zealand are experiencing material hardship, according to a report from the New Zealand Council of Christian Social Services. Source: Radio New Zealand.

The report shows that 10.2 per cent of the population is experiencing relative income poverty and 473,000 people are experiencing material hardship, but also points to ways to turn this around.

It says, among other suggestions, there should be an increase in the amount that people are allowed to earn when they are on the benefit to $350, with a higher rate for couples. Access to the benefit currently drops when household income is more than $160 a week.

The report also called for a reduction in the abatement rate once people reached that threshold, and the introduction of a GST-rebate support package to help low- and middle-income households with food costs. An increase to benefit rates was further proposed.

NZCCSS chief executive Alicia Sudden said food costs had risen 24 per cent for a family of four since 2021, power costs were up 12 per cent in a year and rent was costing 40 per cent of tenants’ take-home pay each week.

She said 100,000 people were unable to pay their utility bills on time, some were not able to pay to go to the GP and one in three lived in a state of food insecurity.

The report said 51 per cent of Māori households experience moderate to severe food insecurity, while more than 60 per cent of Pacific households do so. More than 50 per cent of disabled people live without enough or only just enough money to cover essentials.

Ms Sudden said New Zealand was no longer a place where people could expect to be able to pull themselves out of hard times.

“Our systems are failing to provide a safety net for unexpected life events or economic shifts,” she explained.

“Our welfare system puts people in hardship, making it more difficult for them to enter the workforce again, while the level of young people out of employment and education is at a 10-year high, reflecting a challenging job market and difficulty accessing training and support.”

Catholic Social Services is a foundation member of the NZCCSS.

FULL STORY

Who’s poor in New Zealand now? (By Susan Edmunds/Radio New Zealand)